Sedric AI, a pioneering compliance-dedicated AI platform for financial institutions, announced it has closed a $18.5 million Series A funding round to further its efforts to transform compliance operations across the industry. This funding round – which was led by Foundation Capital with participation from Amex Ventures – brings the total amount raised by the company to date to $22 million. This funding will be used to grow Sedric’s AI lab in Tel Aviv and expand its global go-to-market teams.
Financial institutions have been embracing technologies such as Gen AI to expand their product offerings, understanding that emerging technology comes with increased potential compliance risk. And regulators are applying more focus and expectations on financial institutions to ensure that those leveraging Gen AI are safeguarding their customers across all customer touchpoints, including communications and marketing.
The current regulatory environment, when coupled with the growing scope of financial services, is driving demand for innovative solutions to help compliance officers execute their organization’s policies, guidelines, and standards. And Sedric enables compliance officers with a holistic view of their customer touchpoints across multiple channels to flag deviations from established compliance policies and guidelines. Sedric’s technology helps companies to quickly take corrective actions without the cost and burden of manual review.
This technology is powered with the financial services industry’s first compliance-dedicated large language model (LLM), offering organizations with a mature, enterprise-ready platform to oversee and manage compliance risks. And while starting with vertical-specific battle-tested models, Sedric is a learning system. Its models are customized to an organization’s unique requirements, automating policy enforcement, mitigating deviations, and streamlining audits.
Sedric’s revenue increased fivefold over the last year. And the company has a growing base of customers in the U.S. and Europe, including global lenders, banks, trading platforms, and insurers.
Sedric’s existing investors include StageOne Ventures, The Garage, Gefen Capital, Skywell Capital, Secret Chord, and K20 Fund.
KEY QUOTES:
“For financial institutions, compliance and growth can be seen as two competing priorities. With our compliance LLM, we turn risk into a growth opportunity. Enterprises now have an opportunity to implement a proven, bank-ready solution that is successfully operational and already widely adopted across the financial services industry.”
– Nir Laznik, co-founder and CEO of Sedric
“Sedric’s AI compliance platform fills a critical industry need as regulatory requirements become more stringent and complex. Nir, Eyal, and the Sedric team have developed a forward-looking solution that is 100 times more effective, faster, and efficient compared to traditional methods. This is a rare ‘better-faster-cheaper’ compliance solution for financial institutions.”
– Charles Moldow, General Partner at Foundation Capital
“I believe that GenAI is going to dominate all aspects of the financial sector, yet in my experience, it’s a challenge to ensure it’s being used responsibly. Sedric enables financial institutions to unlock the potential of these powerful tools safely and within regulatory boundaries. Our platform puts guardrails and protections in place to help financial institutions adopt AI in a private, observable, and reliable way.”
– Eyal Peleg, co-founder and CTO of Sedric
